Considering what pathetic growth rates we had for much of the 90’s this is superb news. :k:
http://www.dailytimes.com.pk/default.asp?page=story_9-4-2004_pg5_3
Economy may grow by up to 6% this year: report
ABN Amro has forecast that the country’s economy is likely to grow by 5.5 percent to 6 percent in the current fiscal year. In its monthly economic report on Pakistan, the bank said overall GDP likely to be 5.5 to 6 percent, while major crops may decline from 5.8 percent last year to between 3 percent and 4 percent in this fiscal year. “The actual water availability for Rabi is now estimated to be substantially higher 29 percent than last year, while the rice and sugarcane plantation data suggest a nine percent and one percent likely increase over last fiscal year,” the report said. It said there would be a 17 percent increase in the wheat support price, while fertilizer off-take has improved by 15 percent this year. But the government has also revised upward its estimate of final cotton output from 10 million bales to 10.3 million bales this year. It said growth in large-scale manufacturing sector, electricity and gas may increase up to 10.4 percent, 12.5 percent and 7 percent respectively, while the construction sector is expected to increase up to 7 percent this year from 3.4 percent last year. The report said the country’s economy is powering full steam ahead and added that LSM sector output growth is at an all time record, roaring ahead at 15 percent (July-January fiscal year 2004). The full year expectation for expansion in LSM production has been revised to 10.5 percent to12.5 percent from a relatively modest 8 percent previously, it said.
It added exports are up 14 percent year to date driven by sharp gains in export earnings from cotton fabrics, knitwear and cotton yarn, while the imports have risen by a higher-than-projected 16 percent with non-oil, non-food imports rising 29 percent and capital goods by 24 percent. But the report said the country’s exports are threatened by the punitive anti-dumping action by the EU on bedwear exports. The 13.1 percent duty effective from March 2004, risk stalling exports in one of Pakistan’s largest and fastest-growing production, it added.The report said private sector credit offtake from banks has surged Rs 231 billion (till March 13), an all-time high. “This level represents a 24 percent increase over June 2003. Out of the total, consumer credit (including mortgage financing) is estimated at around Rs 35 billion, or 15 percent of total year to date disbursement,” it said. It said the agriculture sector performance is likely to come in as per the target of the government despite the setback to the cotton crop, an overall growth of around 4 percent for the year. In addition, the service sectors appear to be performing well, led by communication, finance and wholesale/retail trade. The real sector maintained its robust performance for the first seven months of fiscal year 2004 with an acceleration of momentum in key parameters.